Tesla is again set to lower car prices for customers in China. On Thursday, the electric car maker announced that it will be slashing prices of its Model S sedan and Model X SUV by between 12% and 26% in China – even as the ongoing trade war/tariff slapping battle between the U.S. and China makes it potentially costlier to import cars from the U.S.
In May, Tesla slashed prices following China's announcement to reduce import tariff rate from 25% to 15% on U.S.-made cars. But in July, Tesla had to raise prices, after China slapped a higher, 25% tariff rate on cars imported from the U.S. as a retaliation to U.S. tariffs.
As of the latest price cut in China, Model S basic version will come at 782,900 yuan ($113,000) — down from 849,900 yuan ($122,525). Model X’s most expensive version’s price is down to around 1.2 million yuan ($171,000), from 1.57 million yuan ($227,000). Tesla Model 3 is scheduled to be launched in China with a starting price of 540,000 yuan ($78,000).
With the price cuts, Tesla is willing to absorb a “significant” part of the import tariffs in China, as indicated by its spokesperson. It seems that the carmaker does not want to let tariffs get in the way of its potential market in China – the world’s largest buyer of electric vehicles. Tesla’s revenues from China doubled last year to more than $2 billion, and China accounted for almost 20% of the company’s total car sales.
But Tesla might also be planning to curb some of the import tariff costs. It is setting up a factory in China’s Shanghai, which is expected to produce a significant number of vehicles so the carmaker has to potentially rely less on imports to serve the Chinese market.
The Aroon Indicator for TSLA entered a downward trend on April 26, 2024. Tickeron's A.I.dvisor identified a pattern where the AroonDown red line was above 70 while the AroonUp green line was below 30 for three straight days. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options. A.I.dvisor looked at 165 similar instances where the Aroon Indicator formed such a pattern. In of the 165 cases the stock moved lower. This puts the odds of a downward move at .
The 10-day RSI Indicator for TSLA moved out of overbought territory on April 30, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 38 similar instances where the indicator moved out of overbought territory. In of the 38 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 62 cases where TSLA's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TSLA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
TSLA broke above its upper Bollinger Band on April 29, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Momentum Indicator moved above the 0 level on April 29, 2024. You may want to consider a long position or call options on TSLA as a result. In of 73 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for TSLA just turned positive on April 25, 2024. Looking at past instances where TSLA's MACD turned positive, the stock continued to rise in of 43 cases over the following month. The odds of a continued upward trend are .
TSLA moved above its 50-day moving average on April 29, 2024 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TSLA advanced for three days, in of 348 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 85, placing this stock slightly better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TSLA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.905) is normal, around the industry mean (6.070). P/E Ratio (40.726) is within average values for comparable stocks, (18.064). Projected Growth (PEG Ratio) (2.067) is also within normal values, averaging (5.553). TSLA has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.043). P/S Ratio (6.305) is also within normal values, averaging (74.312).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of electric sports cars
Industry MotorVehicles